Intraday Trading Highlights
Several companies are making waves in today’s intraday trading. First up, Netflix saw its stock spike by over 3% after Bill Ackman’s Pershing Square announced a new investment. This marks a return for Ackman, who had previously invested in Netflix back in early 2022 but sold his position just three months later.
Super Micro Computer also enjoyed a bump in stock price, up 6%, contributing to a significant 19% rise since Wednesday. The company reported first-quarter guidance that surpassed expectations, forecasting adjusted earnings per share between $1.01 and $1.10, alongside projected revenue ranging from $14.5 billion to $15.5 billion. Analysts had anticipated a much lower earnings estimate of 72 cents per share.
On the downside, Cisco Systems faced a 9% drop in shares. Their outlook for adjusted gross margin came in at 65% to 66%, which is below the FactSet consensus of 66.1%. This forecast may overshadow their optimistic view for the fiscal year ending July 2027. Goldman Sachs noted that stronger FY27 expectations might be undermined by these gross margin concerns.
In the memory chip sector, the Round Hill Memory ETF (DRAM) rose by about 5%, marking its third consecutive day of gains. Notable rises were seen in stocks like SanDisk, which climbed 16%, and Western Digital, up 8%. Micron Technology also edged forward with more than a 6% increase.
Meanwhile, Tapestry, the parent company of brands like Kate Spade and Coach, saw a nearly 15% drop after reporting disappointing fiscal fourth-quarter results. While earnings beat expectations at $1.32 per share, revenue of $1.88 billion barely exceeded forecasts. The company did increase its quarterly dividend from 40 to 46.25 cents per share.
Yeti, a popular drinkware and cooler manufacturer, dropped 12% after reiterating its full-year revenue growth forecast of 7% to 8%, which was slightly below analyst expectations of a 7.6% increase.
Birkenstock experienced a boost of 14% in share price after outperforming expectations in quarterly sales and earnings before interest, taxes, depreciation, and amortization. The company remains optimistic about its full-year sales and adjusted EBITDA projections.
Bullish also saw a 6% increase, driven by strong second-quarter results where revenue of $92.6 million surpassed the anticipated $87.4 million. They adjusted their full-year outlook positively as well.
In contrast, JD.com faced an 8% decline in U.S.-listed stock despite reporting solid sales and earnings. Their adjusted earnings per share of 6.29 yuan beat the FactSet estimate of 5.61 yuan, even as sales dipped to 346.4 billion yuan, albeit exceeding expectations.
EnerSys, a battery manufacturer, surged by 4% due to a significant earnings and sales beat. The company’s first-quarter adjusted earnings came in at $3.66 per share, far above the $2.83 predicted by analysts. Revenue also topped the estimates, coming in at $935.6 million.
A grocery store chain reported strong second-quarter earnings of 20 cents per share, exceeding analyst expectations of 13 cents, contributing to a 5% increase in stock price.
Jack in the Box enjoyed a minor gain of 2% after its fiscal third-quarter profits exceeded forecasts, earning 96 cents per share against the 88 cents expected.
Red Robin Gourmet Burgers saw its stock soar nearly 25% after reporting second-quarter earnings of 12 cents per share on revenue of $277.6 million, surpassing analyst expectations significantly.
On the downside, Coherent, a photonics company, reported a 5% decrease in fourth-quarter adjusted gross profit, closely matching expectations with a non-GAAP gross margin of 40.2%.
Cerebras Systems, which specializes in AI chips, experienced a nearly 14% decline after second-quarter revenue fell short of the consensus estimate. Their revenue registered at $180 million against an expected $194 million.
Lastly, StubHub, a secondary market for event tickets, saw a nearly 14% decline, with second-quarter adjusted gross margin coming in at 82.2%, below the anticipated 84.3%. The company reaffirmed its full-year adjusted EBITDA outlook.
